Survival for Mom-and-Pop Computer Stores?

Jeramy asks: "Hello, In February I entered into a partnership with a friend and now own and operate a 'mom and pop' computer store. In this day and age of PriceWatch and $599 systems from Wal-Mart, it is very frustrating (to say the least)to try to sell anything computer related to anyone. Customers walk into the store trying to haggle down our relatively low prices (relative to what we pay plus shipping to get it here) like we are a discount fish market. So my question is: Since 'every day low prices' are not possible, what can a local store do to attract customers?"

Comments

Attract people like me..

[zulux]

We install servers all the time, and we would love a local mom and pop place that would have the following stuff in stock:

SCSI dirves and controllers.
Decent cases with good power-supplies.
Stable motherboards.
Generic mice and keyboards without hidious logos.
Well-built cooling fans.
2U cases.

Don't bottom fish - servers still have good profit margins and there are people like me who will gladly pay a premium for good service. You'll lose your shirt if you sell crappy computers to little old ladies - the suport costs will eat you alive if you don't have the heart to tell them to piss off when they can't figgure out 'winderz.'

Sometimes I'm embarassed to be human.

[daviddennis]

Look at the other responses to this message. Yuk.

So here are a few thoughts:

* Consider quality. You probably use higher quality components than your "cut to the bone" competition. Capitalize on that. A few horror stories about eMachines power supplies should be really helpful, especially if you can point out why yours are better.

* Run training classes for computer newbies.

* Do all you can to make your store a comfortable, pleasant place. If you're not going to price to the bone, you can at least try and make shopping more pleasant. Visit one of Apple's new retail stores and note what a nice shopping experience they offer. I know, I know, they spent half a million a store, and you can't. But you should still be able to emulate a few aspects of their model, such as selling Palms and digital cameras alongside computers. These are higher-margin devices, so if you send someone out with a package, you can pocket more profit.

* Hire salespeople who actually know what they're talking about. If you get people who can answer questions well, you'll collect customers who like having their questions answered.

This is a tough business, especially if you're competing against the likes of Fry's "We sell everything!". I'm sure there's still a place for the white box, because it's what my company gets all the time. We definitely feel that we gain from dealing with a local vendor who can be more responsive and less bureaucratic.

Hope that helps.

D

A few things

[inkfox]

Have a presence at some of the local user groups. Having a clueful person there can make a difference. The audience isn't just the users there, but also anyone who they talk to. Word of mouth is your friend.

Advertise in other mom-and-pop shops. If there's something cool you can throw on a free CD-ROM for them to give away with purchases, you capture the minds of people who aren't living chain-store lifestyles.

Have a local news presence. Make friends at the local TV and radio stations. Be the first with answers about viruses and other computer-related news. It's a given that they let you plug your business in exchange for acting as an unpaid consultant.

Don't talk down your competitors. Don't be afraid to point to them as a source of things you don't have. If you send someone to the best buy to pick up a product you don't have, they remember that you had the answer, not that Best Buy had the product.

Bring the prices up just a touch so you have room to drop a couple bucks for repeat customers before they even ask. People love believing they're getting a bargain on top of good service.

Don't tell them about all the service benefits of being a local shop. Show them.

Look for a few high-profile places to drop a couple free systems. I'd bet most school papers would print a few nice ads and a favorable story in exchange for a system for their school paper, for exmaple. Set up a shelter or a church with internet access and some old PCs that might be thrown away otherwise. Toss in a few old "Learning Word" books or similar and you can be credited with creating a job skill learning center. It doesn't have to be fancy and great. People will talk even so.

Play up the locally owned bit. Patriotism and local pride is very big right now. It's a valid and honest thing to advertise.